What is NIFTY

What is NIFTY

NIFTY is an Index computed from performance of  top stocks from different sectors listed on NSE (National stock exchange). NIFTY consists of 50 companies from 24 different sectors. NIFTY stands for National Stock Exchange’s Fifty.   The companies which form index of  NIFTY may vary from time to time based on many factors considered by NSE.  NIFTY is for NSE similarly  SENSEX is for BSE

Some mutual funds use NIFTY index as a benchmark meaning the mutual funds’ performance is compared against the performance of NIFTY. On NSE there are futures and options available for trading with NIFTY as underlying index.

What is Nifty Index and its role in Stock market.

Stock markets are very sensitive and they get affected whenever there is any calamity in the world whether it relates to religion, politics, finance..etc. So your decision in choosing the stocks for you should be very specific. You should be very practical and precise and also you need to be very sure of your goals in the stock market. You should have good idea about nifty index and its role in the stock market. You should also analyse the whole market before investing in any stocks because a small mistake in choosing the right stocks can leave you bankrupt. So let us have a look at how you can research the market and also look at whom you can consult. Also we will discuss how you can go for an expert in getting your investments increase in the stock market.

What is SENSEX?

What is SENSEX?

SENSEX is the short term for the words "Sensitive Index" and is associated with the Bombay (Mumbai) Stock Exchage (BSE).

The Sensex is an "index". What is an index? An index is basically an indicator. It gives you a general idea about whether most of the stocks have gone up or most of the stocks have gone down. 

The Sensex is an indicator of all the major companies of the BSE. 

The Nifty is an indicator of all the major companies of the NSE.

If the Sensex goes up, it means that the prices of the stocks of most of the major companies on the BSE have gone up. If the Sensex goes down, this tells you that the stock price of most of the major stocks on the BSE have gone down. 

Just like the Sensex represents the top stocks of the BSE, the Nifty represents the top stocks of the NSE.